Is it okay to use netlify as an update server

Netlify is not a server / cannot provide persistent storage as it is JAMStack. AFAIK, you’d need somewhere to host / store the file you speak of, however, you could then spin up a function on request for the file to carry out logic checks before requesting the file.

Please also see: [Support Guide] Can I run a web server, HTTP listener, and/or database at Netlify?